WMT’s bonds currently sell for $1,190. They pay a $192 semi-annual coupon payment, have a 31-year maturity, and a face value of $1,000, but they can be called in 16.25 years at $1,840. Their yield-to-call (YTC) is closest to A. 11.90%. B. 12.46%. C. 16.13%. D. 16.79%.
WMT’s bonds currently sell for $1,190. They pay a $192 semi-annual coupon payment, have a 31-year maturity, and a face value of $1,000, but they can be called in 16.25 years at $1,840. Their yield-to-call (YTC) is closest to A. 11.90%. B. 12.46%. C. 16.13%. D. 16.79%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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WMT’s bonds currently sell for $1,190. They pay a $192 semi-annual coupon payment, have a 31-year maturity, and a face value of $1,000, but they can be called in 16.25 years at $1,840. Their yield-to-call (YTC) is closest to
A.
11.90%.
B.
12.46%.
C.
16.13%.
D.
16.79%.
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